The Schmitz Brothers, Michael and Rick, founded Little Switzerland in 2012. Little Switzerland is a private recreation property that includes multiple downhill ski runs (18 trails and 3 terrain parks) for various skill levels as well as a network of mountain bike trails. The ski hill is equipped with two riblet chair lifts that serve both the front and backside of the hill, as well as two rope tows, one conveyor and one handle tow. The slopes have supplemental snowmaking capacity and are lighted for nighttime fun.
The Schmitz Brothers wanted to refinance the existing debt on the facility. Utilizing an SBA 504 loan provided by WBD and financing from Forte Bank, Rick and Michael were able to refinance the debt and take advantage of the cash out option.
Rick Schmitz took time out of his busy schedule to provide some feedback and insight into running his business and how the 504 loan refinance has helped Little Switzerland with its improvement plans.
WBD: Can you tell us about your business – how it started, keys to success, challenges?
"In 2012 my brother and I purchased Little Switzerland Ski Area. It had been closed for 5 years and needed a complete upgrade including the lodge, lifts, snowmaking, and infrastructure. Using a lot of sweat equity we revitalized the property and opened the following winter. The improvements coupled with the Little Switzerland name, pent-up demand, and location were key ingredients to early success. Each year we poured earnings back into the property to continue to make improvements. These investments back into the business have continued to yield great returns."
WBD: What projects, both real estate and equipment, has WBD and namely the SBA 504 program worked with you on and how has it enabled you to meet your expansion goals – production, new products, better serve customers?
"The original purchase of the hill had a land contract with a balloon payment that was about to come due. When exploring options to pay off the land contract, we found the 504 loan offered the most competitive rate with the longest amortization and a locked rate. With the equity we had built in the business since inception, we were able to consolidate all of our debt and pull additional funds out to accelerate some of our improvement plans. We have used the extra funds to purchase new grooming equipment and will use some of the funds for our ambitious master plan currently in development that includes parking lot upgrades, beginner area expansion, additional buildings, and potential lodging options."
WBD: Did you have a good experience working with WBD? Would you work with us again?
"WBD was great to work with and guided us through the complex process of the 504 loan with ease. We would definitely use WBD again."
WBD: What have been your keys to success so far – employees, timing, hard work? Challenges?
"As mentioned, continued reinvestment back into the property has been one of the key ingredients for our success. We are also very fortunate to have an amazing and dedicated staff that really makes Little Switzerland a great place to visit."
WBD: Do you have any advice for other business owners in taking that next step to growing their business?
"Love what you do. We love our business, employees, and customers. We love every aspect of the ski business, believe in it, and invest heavily back into it."
Congratulations and thank you to the Schmitz Brothers for their success and partnership in working with WBD and Forte Bank. We wish you the best of luck and thank you for sharing your experience with us. For our readers, please visit https://www.littleswitz.com/ for more information. And remember to support your local small businesses.
